Term Paper ECON 5522The Effect of Minimum Wage on Poverty in CanadaSean GaoB00595861I. ObjectiveThis article focuses on proposing some useful methods for carrying out research and collecting relevant data in order to study and address an important and widely concerned issue in Canadian labor policy: “what is the effect of the minimum wage on poverty in Canada?” More specifically, this question can be represented as:1) “Would an increase in the minimum wage result in a decrease or increase in Canada's poverty rate (measured by the percentage of the population living in poverty or below the poverty line)? ”2) “Does the minimum wage not affect the poverty rate significantly at all?” 3) “Is the minimum wage a useful and powerful tool against poverty?” II. ContextThe minimum wage, or the lowest compensation granted to workers by employers, on an hourly, daily or monthly basis, is a very commonly used labor policy tool and is diversified across the provinces and territories of Canada. However, people's opinions regarding the effects of the minimum wage differ. Those in favor of implementing minimum wage rules argue that this raises the living standards of workers, reduces poverty and inequality, increases morale and, consequently, the efficiency of businesses. Anyone who disagrees sees minimum wage laws as an ineffective tool for reducing poverty. Furthermore, they argue that this increases unemployment. Economists are less supportive of the minimum wage than the general public. The argument widely recognized by economists is that provided by George Stigler in 1949, who argued that the minimum wage was ineffective in reducing poverty. According to his theory, employment could fall more proportionally to the wage increase, therefore de...... middle of document ......2004Sep-01$7.05 May-01$7.60 Jan-01$6.80 Feb- 01$7.45 Oct -01$6.80 Jun-01$6.25 Jan-01$6.30 Apr-01$7.25 Sep-01$7.00 2005Mar-01$7.55 May-01$7.75 Apr-01$7.15 Feb-01$7.75 Apr-01$7.15 Jan-01$6.50Jun-01$6.75 Jan-01 $6.50Jul-01$6.70 Apr-01$7.60 2006Mar-01$7.95 May-01$8 .00 Apr-01$7.50 Feb-01$8.00 May-01$7.60 Jan-01$7.00Oct-01$7.50 Jan-01$7.00Jul-01$7.25 Apr-01$8.00 Sep - 01$8.00 2007Jan-01$8.25May-01$8.60 May-01$8.50 May-01$7.75Oct-01$8.00 Mar-31$8.75 May-01$8.10 Apr-01$8.00 Mar-31$7.75 Apr-01$8.50 Apr-01$8.40 01 $9.25 Jun-01 $8.20 Oct-01 $8.40 Mar-31 $9.50 Apr-01 $8, 60 Jan-01 $8.50 Jul-01 $9.00 Apr-15 $8.00 Sep-01 $8.25 May-01 $8.75 Oct-01 $9.00 Apr-01 $8.80 2009 May-01 $9.50 Jun -01$8.70Oct-01$9.00 Mar-31$10.25 Apr-01$9.20Oct-01$9.65 Jan-01$9.50Jul-01$10.00 Apr-15 $8.50Sep-01$9.00 Oct-01$9.50 2010